Dow futures fell more than 100 points today, indicating Wall Street will be lower tonight. Amid the pressure of the collapse in oil prices
At 6:27 p.m. Thai time, the Dow Jones Industrial Average dropped 112 points, or 0.32%, to 34,979 points.
The Dow jumped more than 100 points on Friday to a record high. Responding to the disclosure of better-than-expected non-farm payrolls Which makes investors less worried about the recovery of the US economy.
However, Wall Street stocks are expected to decline tonight. by being pressured by the collapse of oil prices After the United Nations (UN) called on the nation to stop using fossil fuels and coal. As global warming is approaching critical levels
As of 6:18 p.m. Thai time, the West Texas Intermediate (WTI) crude oil contract was delivered in September. Trading on the NYMEX was down $3.05, or 4.46 percent, to $65.23 a barrel.
The Intergovernmental Panel on Climate Change (IPCC) report says levels of greenhouse gases in the atmosphere are now high enough to have a detrimental effect on the climate for the next several decades or hundreds of years. page
UN Secretary-General Antonio Guterres urged the nation to stop using fossil fuels and coal. as well as other energy that immediately emit high levels of pollution
“This report is a signal to end the use of fossil fuels and coal before they destroy our planet,” Guterres said in a statement.
In addition, oil prices have been pressured by concerns that The spread of the covid-19 virus Delta species will affect the economy and oil demand. including the fact that the United States disclosed an increase in crude oil inventories earlier this week.
At the same time, some investors are worried that strong employment numbers will support the Federal Reserve (Fed) to begin cutting its bond-buying program following quantitative easing (QE) and raising interest rates. This will be a negative factor for Wall Street stock market.
Investors expect the Fed to send more clear signals about the direction of interest rates. Including the outlook for the QE limit cut at the Fed’s annual meeting in Jackson Hole, Wyoming, Aug. 26-28.
Fed Vice President Richard Clarida signaled in an earlier statement that The Fed will cut its QE limit this year before raising interest rates in 2023.
Mr Clarida said The US economy is likely to meet the Fed’s employment and inflation targets by the end of next year. This will allow the Fed to raise interest rates in 2023.
“I believe the economy will meet the conditions necessary for the Fed’s rate hike by the end of next year. and a return to normal monetary policy in 2023 will be in line with the Fed’s flexible average inflation target, Clarida said.
“If my predictions come true It is expected that the Fed will begin announcing a cut in bond purchases later this year,” he said.
Clarida’s remarks were consistent with statements by Fed governor Christopher Waller. Mr Waller stated that The Fed should begin cutting its QE limit by October.
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